Industry News
Mortgage Industry News
Tension in Egypt Pushes Stocks Down
02/02/2011
Despite the strong print on ADP (consensus for Nonfarm Payrolls on Friday is +143K), the escalating tension in Egypt is pushing stocks down; Treasuries and mortgages are higher. MBA mortgage applications were up 11.3%; purchases were 9.5% higher, while the Refi index increased 11.7%; applications for adjustable rate mortgages posted a weekly jump of +17.8%. Right now, the futures market is pricing in a 100% chance that the Fed keeps rates between 0% and 0.25% through June 22nd, 2011. Currently, the Ten Year yield is at 3.492% (3.43% yesterday) and the 2-10 yield spread is at 279bps, flattening 3bps since yesterday morning.
